Report: Google to introduce news payment tool

Google Inc. may soon introduce a one-click payment system for online content, dubbed “Newspass,” potentially providing a new revenue source for publishers struggling in the digital age, according to reports in recent days.

“Later this year, Google will launch an integrated payment system that will allow users to buy (news content) with one click and publishers to use a single infrastructure for Web, mobile and tablet to monetize their content,” read an article in Italian newspaper La Repubblica, according to a New York Times translation.

It would allow consumers to pay for full subscriptions or one-time access to articles.

The media industry has a love-hate relationship with Google. The Mountain View online giant provides huge amounts of traffic to the Web sites of newspapers and magazines, but some complain that the company has grabbed a sizable portion of the advertising dollars they once claimed, in part by aggregating and linking to their articles.

Google has consistently said that it wants to partner with media businesses and help where it can, readily admitting that the usefulness of its services depends on quality content. It has rolled out a handful of initiatives to help publishers make more money online.

Spokesman Chris Gaither said the company had nothing specific to announce at this time concerning Newspass, but Google executives have made references to such a system in the past.

In December, Chief Legal Officer David Drummond said at the World Newspaper Congress: “We’re actively exploring technology solutions that might help publishers with some of the logistical problems in charging for content, such as billing systems for subscriptions or micropayments.”

Last fall, Google told the Newspaper Association of America that a new version of its Checkout micropayment platform could help the industry charge for online content.

Various media outlets have attempted to charge small amounts for single articles, including Oakland Tribune publisher MediaNews, but many consumers are turned off by the idea of keying in their credit card number for a few dollars every time they want to read an old story.

Others, including the New York Times and Wall Street Journal, have charged for full access to select articles or columns, with mixed results.

A system like the one Google appears to have in the works would provide consumers with the ability to set up a single account and easily read news across various sites.

The hope among many in the media is that, as iTunes seemed to prove for digital music, people will pay for content if the system is convenient and the pricing is low.

Google isn’t the only one at work on this problem, however. News Corp., publisher of the Wall Street Journal, announced last week that it invested in Journalism Online LLC, the venture co-founded by Steven Brill that is also exploring ways to help media companies charge for online content.